Address Housing Crisis With Subsidies, Tax Rebates, Group Tells Tinubu

The Housing Development Advocacy Network (HDAN) has issued an urgent call to President Bola Tinubu, urging immediate action to address Nigeria’s escalating housing affordability crisis.

The advocacy group emphasised the need for government intervention through subsidies, tax rebates, and infrastructure support to make housing more accessible to all Nigerians.

Executive director of HDAN, Festus Adebayo stated, “President Tinubu has an opportunity to make a significant impact by addressing the housing affordability crisis head-on.

Around the world, provisions are made for the poor, and Nigeria should be no different. We need subsidies, tax rebates, and infrastructure support to make housing more affordable for all Nigerians.”

The crisis has reached alarming levels, particularly in urban centres like Lagos and Abuja, where property prices have soared beyond the reach of many potential homebuyers.

A one-bedroom apartment in these cities can now cost upwards of N25 million, a price unattainable for the majority of Nigerians.

HDAN warns that without intervention, up to 70 per cent of workers’ income could soon be spent solely on food, leaving little to cover other essential expenses such as rent and children’s school fees.

This situation has been exacerbated by high inflation rates, which stood at 33.40 per cent in July 2024, coupled with increased costs of building materials and unfavourable exchange rates.

According to him “Over the past few years, the housing market in Nigeria has become increasingly unforgiving. In Lagos and Abuja, two of the country’s most expensive cities, the cost of housing has jumped dramatically. A one-bedroom apartment can now cost upwards of N25 million, a price unattainable for the majority of Nigerians.

“Even with the recent increase in the minimum wage to N70,000, the United Nations guideline that individuals should not spend more than 30 per cent of their income on housing is virtually impossible to meet. For someone earning N100,000 per month, this would translate to N30,000 for housing—a figure that is far below the actual costs.

“These figures have essentially erased the hope of the average Nigerian. The dream of owning a home has become a nightmare for many, as they are forced to grapple with a market that is simply out of their reach.”

“Several factors have also contributed to the housing affordability crisis in Nigeria, including inflation, the high cost of building materials, poor exchange rates, and high interest rates. Inflation in Nigeria has been persistently high, with the rate decreasing slightly to 33.40 per cent in July 2024 from 34.19 per cent in June 2024. This has had a cascading effect on the cost of living, with housing being one of the most affected sectors.

“The cost of building materials has surged, making it increasingly expensive to construct new homes,” explained Adebayo. “Coupled with a poor exchange rate and high interest rates, the situation has become untenable for both developers and potential homeowners.”

The organisation commended the efforts of Arc. Ahmed Dangiwa, Nigeria’s Minister of Housing and Urban Development, over the past year.

However, HDAN insists that more comprehensive measures are needed to tackle the crisis effectively.

While the government has announced plans for renewed hope of housing projects, HDAN cautioned  that these efforts may not adequately address the needs of those most affected by the crisis.

The absence of housing subsidies is seen as a significant gap in the government’s approach.

“The introduction of housing subsidies is crucial,” Adebayo emphasised. “Without such intervention, the situation will only worsen, putting even more strain on Nigerian families.”

HDAN and its stakeholders argue that the housing crisis should be at the forefront of political discourse, as it affects every aspect of life, from economic mobility to social stability.

They believe that addressing this issue is not just about providing shelter, but about ensuring the overall well-being and stability of the nation.

As the crisis deepens, HDAN calls on President Tinubu to consider a range of policy options;Implementing housing subsidies to make homes more affordable for low and middle-income earners.

“Offering tax rebates to developers who build affordable housing units; Providing infrastructure support to reduce the overall cost of housing development.Exploring innovative financing models to make mortgages more accessible.

The organisation stressed that without urgent action, the housing crisis could have far-reaching consequences for Nigeria’s social and economic fabric.

HDAN’s call to action serves as a reminder that housing is a fundamental human need, and addressing the current crisis is essential for the future of Nigeria.

As the nation grapples with this pressing issue, all eyes are now on President Tinubu and his administration to see how they will respond to HDAN’s urgent call for comprehensive housing reform.